R1 SUPPLEMENT 6509.11k-94-2
EFFECTIVE DATE 7/7/94
6509.11k,33
Page 1 of 4
FSH 6509.11K - SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOOK
R-1 SUPPLEMENT 6509.11K-94-2
EFFECTIVE July 7, 1994
CHAPTER 30 - COLLECTIONS
33 - COLLECTION DOCUMENTS. Use form FS-6500-89, Bill for Collection, to bill for monies due the Forest Service from non-Federal parties. Use form AD-673, Request to Bill, to bill for monies due to the Forest Service from non-USDA Federal Agencies. Use Form
AD-742, Transfer and Adjustment Voucher, to bill for monies due from other USDA Agencies.
33.1 - Bill for Collection, Form FS-6500-89. Use the latest modification of this form that has the following statement on it:
Payments not received by the due date are subject to a LATE PAYMENT CHARGE at the rate published by the Department of the Treasury unless a different rate is prescribed by contract or agreement. Postmarks are not honored. ADMINISTRATIVE
CHARGES may also be assessed. An additional 6% PENALTY will be charged for payments over 90 days past due. (Authority: Debt Collection Act of 1982.)
33.11 - Preparation. The following basic information shall be shown on all billings. Keyed numbers shown in Exhibit 01 at the end of this section are explained below.
1. Insert date of issue in block provided. The bill should be mailed the same day as the date it is issued.
2-5. Same as parent text.
6. Enter a brief written description of the transaction. If interest, administrative, or late payment charges are assessed on the bill, they should be itemized separately.
7. Same as parent text.
8. The bill number will be inserted at the time of preparation when issued by the Unit office. Copy of billing issued by subunit will be numbered upon receipt in the Unit office and the paid original numbered upon receipt from the payer. Issue bill numbers in consecutive order each fiscal year, starting with bill number 1.
Followup bills should be issued with a new number. The previous bill should be cancelled and the followup bill be given a new number when it is issued. A notation about the cancellation of the previous bill should be made in the "description" block of the followup bill. Followup bills should be issued within 5-7 workdays after the due date on the delinquent bill.

R1 SUPPLEMENT 6509.11k-94-2
EFFECTIVE DATE 7/7/94
6509.11k,33
Page 2 of 4
Under some circumstances (ie. such as trespass cases), it may be appropriate to bill more than one responsible party the same debt (joint and severable billings). This usually occurs when more than one party may be responsible (e.g. landowner, contractor and subcontractor) or when another party, such as a surety company, is jointly liable for a debt if the principle debtor does not pay. In these situations, use the same bill number along with a suffix letter such as "a" or "b" on the other party's bill. Only the principle party's bill is recorded on the Accounts Receivable report.
9. Enter the 2 digit fund code representing the Region/Station and the 2 digit Unit number. Fund codes are found in the FSH 6509.31 (NFC Manual), Title II, Chapter 6,
Section 6, Appendix B.
10. Enter subunit number and timber sale contract number. Units will issue separate billings for each different timber sale contract number. Christmas Tree Permits can be consolidated on one bill as long as only one contract number is required. The same holds for Forest Product Sale Permits and Firewood Permits.
11. Enter date payment is due. The due date is normally 15, 30 or 45 days after the issue date depending on the purpose for the bill. In determining the due date, do not count the issue date as a day. Instead start counting the 15, 30 etc. period the day after the issue date.
12. Same as parent text.
13. Enter the management code and amount for each line entry. The budget object code is required for all refund transactions. The management code is placed in the first six digits of the project field. Revenue billings that are outstanding as of September 30 must be converted to a current year management code before processing in the new fiscal year.
Unpaid refund and reimbursement transactions can retain their prior year coding.
33.13 - Special Instructions for Selected Types of Billings. The accounts receivable clerk must frequently review the unpaid billings file and alert the appropriate individuals about past due billing. The followup procedures are specified in chapter 20 of FSH 6509.11h.
Generally, 3 followup bills for past due debts will be issued at 30 day intervals. A certified letter should be sent to the debtor along with the bill. The followup bills will clearly identify the principal balance, interest, administrative costs and penalties in the description block.
If no response is received after the third followup bill and the amount is within the Unit
Claim Officer's authority (Reference FSM 6570) then:
1. The Unit may send the bill to the Regional Office for referral to a Collection
Agency. If the Collection Agency is unsuccessful, the bill will be returned to the originating Unit. The Unit may pursue further collection action or compromise, suspend or terminate collection action. Compromise, suspension, or termination

R1 SUPPLEMENT 6509.11k-94-2
EFFECTIVE DATE 7/7/94
6509.11k,33
Page 3 of 4 of a debt owed to the Government must be in accordance with the requirements in 4
CFR Part 103 and Part 104.
2. The Unit may compromise, suspend or terminate collection action. If collection action is suspended or terminated, it should be documented in a letter to the Forest
Supervisor and the uncollected bill should be recorded in an Uncollectible Register.
Depending on the circumstances, the Unit may have to issue a 1099 to the debtor.
No further action is necessary.
If no response is received after the third followup bill and the amount is not within the Unit
Claim Officer's authority, send the bill along with the necessary documentation and a recommendation to the Regional Office.
Use form AD-673, Request to Bill, to bill for monies due to the Forest Service from most non-USDA Federal Agencies.
The following basic information shall be shown on all AD-673s. Key numbers shown in
Exhibit 02 at the end of this section are explained below:
1. Insert the name and address of the payer (customer) agency.
2. Insert the bill number.
3. Insert the date the bill is prepared.
4. Enter the management code in which the monies will be deposited. If multiple management codes are used, leave this blank and see 10 below.
5. Enter the NFC fund code and unit number. The NFC fund codes are listed in Title II,
Chapter 6, Appendix B of the NFC Manuals (FSH 6509.31). For Region One the NFC fund code is TM.
6. Enter the beginning date or transaction period the billing covers. Other data such as
"first", "second", "full", "final", or "CY 19__" can be entered if applicable.
7. Enter the ending date or transaction period the billing covers.
8. Enter the budget object classification code (Since Requests to Bill are often used to reimburse TS121 work activities, budget object 0250 is used quite often). Also enter the related collection transaction code (usually this will be T/C 2 since we are billing for a reimbursement from another Federal Agency).
9. Enter a written description of the transaction. Since OPAC is limited to 400 characters, the information should be brief but specific. Include pertinent information

R1 SUPPLEMENT 6509.11k-94-2
EFFECTIVE DATE 7/7/94
6509.11k,33
Page 4 of 4 such as agreement numbers, accounting codes, a contact person and phone number, etc.
Contact the billed (customer) agency to determine any specific requirement they may have. Remember, the billed (customer) agency can charge the bill back at their option if the information is not sufficient for them to process the charge.
After entering the description information, the statement "BILL THROUGH OPAC" must be written or stamped in the description block. The Agency Location Code (ALC) must be written directly underneath this statement. We recommend Forests contact the other agency and get the ALC directly from them (ie. do not pick an ALC for the billed agency off of the various lists that are available).
10. Enter the amount of the billing. Note: If the funds are collected into multiple management codes, leave block 4 above blank and then list the management codes and amounts for each of them in this block.
11. The legal authority for the transaction can be entered.
12. Enter the total amount of the billing.
13. Enter the collecting Agency (eg. USDA Forest Service).
14. Enter the unit name (eg. Flathead National Forest).
15. Enter the date signed.
16. Enter the name of person approving the billing.
17. Enter phone number of billing Agency.